Manufacturers hiring but training in house

Unable to satisfy their need for highly skilled employees, area manufacturers are still hiring, but are more often turning to entry-level workers and providing in-house training.

FATIMA HUSSEINBUSINESS WRITER

Unable to satisfy their need for highly skilled employees, area manufacturers are still hiring, but are more often turning to entry-level workers and providing in-house training. Hudson Technologies of Ormond Beach and AO Precision Manufacturing of Daytona Beach have each added at least 30 employees since the beginning of the year. However, a majority of them have little or no manufacturing experience, according to company officials. "We have a big demand for these people," said Mark Andrews, president of Hudson Technologies, speaking about the company's specific need for tool and die makers, a class of machinists. Because experienced tool and die makers are harder and harder to find, the best alternative to the problem is to hire unskilled people to train them in-house, Andrews said. Hudson Technologies, a maker of metal enclosures, cases, stampings and metal diaphragms added only about seven or eight experienced people out of their 31 hires this year, according to Andrews. The company on North U.S. 1 in Ormond Beach currently has 240 total employees. "That's the nature of this beast," said Stephen Koch, president of AO Precision Manufacturing. "We prefer experienced workers, but we can't rule out untrained people who are able to fill these positions. AO Precision Manufacturing has an immediate need for workers to fill its $2.3 million, 60,000-square-foot building expansion that opened for business last week on Mason Avenue. The manufacturer of parts and components for small firearms hired 32 people this year, also mostly inexperienced computer numerical control machinists, according to Koch. The company employs 245 people currently, he said. Citing the lack of skilled workers as a national problem, Koch said AO Precision Manufacturing is taking an initiative by primarily training their own entry-level hires. The company also works with Daytona State College's Advanced Technology College in Daytona Beach in offering a two-week training program for machinists. Hudson Technologies also works with the ATC and is developing its own tool and die apprenticeship program. The national median hourly wage of machinists is $17.12, according to the U.S. Bureau of Labor Statistics. Officials with Hudson Technologies and AO Precision Manufacturing declined to say how much its new hires are being paid. Koch said his company will ultimately spend more time and money in training their own workforce, but the costs are necessary to compete in the growing manufacturing industry. According to the Manufacturing Institute, 600,000 manufacturing jobs went unfilled in 2011. Sean Snaith, director of the University of Central Florida's Institute for Economic Competitiveness, said, manufacturers beginning to hire entry-level employees shows that they are starting to adapt to the changing labor environment. "The reality is that training in-house is a better option," said Snaith. "Even though they will take time to train, the manufacturer will create the employees they were looking for all along," he said. Snaith said if manufacturers continue to hold out for experienced workers, they may lose out on profits and it will take longer for them to catch up with other companies who are beginning to adapt to the changing labor environment. Both manufacturers intend to keep hiring, the presidents of both companies said. The need for additional employees at Hudson Technologies is based upon projected increase in company growth, particularly its two fastest-growing segments, medical products and homeland security, Andrews said. "These are two segments of our business that are growing extremely well," Andrews said, explaining that the medical products business is expected to grow by 25 percent this year. Koch said his company is still looking to hire people to fill open CNC machinist positions. "This year, we needed in excess of 100 people, and right now we're looking for about 20 CNC positions," Koch said. "I think there will be another eight to 10 people that will be added," Andrews said. Hudson Technologies will be hiring quality engineers, customer care specialists, tool and die workers and at least five more machine operators, said Andrews. "Manufacturers hiring unskilled labor to train is becoming a trend in the labor market," Snaith said. "If it's successful, it may be something we see a lot more of."